On Nov. 7, Boston Beer (NYSE:SAM) released third-quarter earnings for the period ended Sept. 24.

  • Sales and earnings per share beat estimates for the quarter, but full-year estimates remain within the $1.16-$1.26 range.
  • Gross margins declined 1.82% on packaging costs, but a 20% increase in barrels sold more than made up for the difference.
  • The company continues to maintain a strong balance sheet, with the flexibility and cash to fund expansion.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$73,980

$75,867

$63,210

20%

Net Profit

--

$5,908

$4,187

41.1%

EPS

$0.33

$0.41

$0.29

41.4%

Diluted Shares

--

14,351

14,437

(0.6%)

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

57.30%

59.12%

(1.82)

Operating Margin

10.79%

9.81%

0.98

Net Margin

7.79%

6.62%

1.17

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$75,525

$61,600

22.6%

Accounts Rec.

$18,887

$14,400

31.2%

Inventory

$15,768

$12,500

26.1%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$14,117

$11,300

24.9%

Long-Term Debt

$0

$0

N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$23,425

$21,350

9.7%

Capital Expenditures

$7,704

$10,950

(29.6%)

Free Cash Flow

$15,721

$10,400

51.2%

Find out why Fools always follow the money.

Related Companies:

  • Molson Coors Brewing (NYSE:TAP)
  • Anheuser-Busch (NYSE:BUD)
  • Diageo (NYSE:DEO)
  • AmBev (NYSE:ABV)

Related Foolishness:

Diageo is a Motley Fool Income Investor pick, while Anheuser-Busch is an Inside Value recommendation.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.